PAG acquires majority stake in Pravesha Industries
PAG is a private equity group targeting Asia that bought a $200 million stake in Pravesha Industries Pvt. Ltd. This is the second foray into India’s packaging business for PAG in two months after it got a $1 billion equity stake in Manjushree Technopack.
Pravesha Industries deals in manufacturing of pharmaceutical packaging products and has an approximate production capacity of 15000 metric tonnes of plastic bottles closures drums. Annual production of the company involves approximately two billion cartons, labels, and leaflets of essential pharmaceutical clients. About 95% of what Pravesha sells goes to developed countries and the major markets for its products are in the US and Europe.
While speaking with Nikhil Srivastava, Partner & Managing Director and Head of India Private Equity at PAG, the organisation identified the Indian packaging segment as strategic because of the latter’s double-digit growth potential in the next decade buoyed by domestic manufacturing and a vibrant pharmaceutical exports business. He also pointed out that Pravesha will be instrumental in laying down the packaging development plans of PAG as it moves forward to achieve both organic and inorganic growth.
PAG has been investing in India since 2009 and now has over $3 billion in asset under management across the sectors. Some of its substantial investments include Nuvama Wealth Management, Sekhmet Pharmaventures and Acme Formulations.